Summary
A 56-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved delinquent debts totaling approximately $35,090. The Statement of Reasons detailed two primary financial issues.
First, the applicant admitted to owing $11,043 for a delinquent credit card debt, which he stated was paid in 2015. A credit report confirmed the account was paid for less than the full balance, with the last payment in April 2015, resolving this debt. Second, the applicant admitted to owing $24,047 for a past-due credit card account, with the last payment recorded in April 2010. The applicant had limited contact with this creditor, and no payment arrangement had been established, leaving this debt unresolved.
The denial was based on the applicant's considerable amount of unresolved debt, indicating an inability to manage financial obligations. The applicant failed to provide sufficient evidence of a reasonable plan to resolve his debts or demonstrate significant actions taken to implement such a plan. Furthermore, his financial difficulties had persisted for several years without clear indications of resolution.
Why the Applicant Was Denied
- The applicant has a considerable amount of unresolved debt, indicating an inability to manage financial obligations.
- The applicant did not provide sufficient evidence of a reasonable plan to resolve his debts or demonstrate significant actions taken to implement that plan.
- The applicant's financial difficulties have persisted for several years without clear indications of resolution.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial difficulties have been ongoing since at least 2010.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant experienced job loss, he has not shown responsible management of his debts.
- AG ¶ 20(c)appliedReceived Counseling for the ProblemThe applicant took a financial counseling course.
- AG ¶ 20(d)rejectedInitiated Good-faith Effort to Repay DebtsThe applicant has not made significant progress on his major debts.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedMar 27, 2015
- Answer filedMay 7, 2015
- Hearing heldSep 1, 2015
- Decision dateMar 24, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Management on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases